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Countdown to the Closing Bell

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Us 11, U.s. 11, Goldman Sachs 7, Google 5, Lifelock 5, Liz 5, Japan 4, Gethelp 4, Herbalife 3, S&p 3, China 3, Lauren 2, Cullen Roche 2, Luciano Siracusano 2, Washington 2, Europe 2, Iemg Liz Caman 1, Novogen 1, Ben 1, Valero 1,
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  FOX Business    Countdown to the Closing Bell    News/Business. Stock  
   market updates. New.  

    February 19, 2013
    3:00 - 4:00pm EST  

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risk alert, precting you before you become a victim. >> identity theft was a ge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen
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now! liz: good afternoon, everybody, iemg liz caman, stocks up across the board, trading near the best levels of the day. take a look. the dow jones industrials up 47 points, that s&p level now at 1529, up nine points,. nasdaq better by 16. the dow is now just about 1% away from its all-time closing high of 14164.53 back to october 9th of 2007. just before the launch week of fox business. it's been awhile. we'll see whether the bulls can turn it up a notch and make it interesting going into the close. in the meantime, though, while the blue chips get the attention, since the dow 30 has named people recognized, we want to point out the strength in small caps. look at the russell 2,000, a record high of 929 #, up six
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full points. same thing for economically sensitive groups like the dow jones transports touching all-time highs, up 60 points at 6007. trains, planes, automobiles, airlines, ups, you name it, it's in there with a big engine. drilling down on individual names that two might be one. office supply chain, office max jumping 20 appointments. that is obviously the one doing better than office depot up nearly 10%. we were all over the story when it broke yesterday. office max and office depot talking about merging, potentially, a deal could be announced as soon as this week, but neither side confirms. the "wall street journal" broke the story. competitor, staples, up 12%, enjoying the best day in four years. the school of thought is that staples may have reached the rewards as a more stable option while an office depot, office max gets together where there could be redundancies.
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what's driving the whole market is it that activity? $140 billion worth of deals announced this month alone, or is it something else at work like earnings, 75% of s&p companies that reported have beat estimates. maybe it's a solid point from europe, german investor confidence rising to the best level in three years. going to the floor show to ask traders, cme group and the imex. all of the above, one of the above, more, what is it? >> liz, you never miss anything. you had it all, 100% right. if you look back to the what happened monday news, china took the futures down, the news in germany turnedded that around, and the mergers is great for the psychology of the market, without a doubt, help lifting today's market with a reason to sell often. you had the housing number not as spectacular. other news there that could have taken the wind out of the
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market. the bull will not die. money flows from the retail investor trading individual stocks, money going into mutual funds so you got it all. liz: got it all, but do you have ten year treasury yields moving in the way that you expected them to? you got the u.s. dollar to play in here as well. >> yeah, well, we have seen treasury yields hovering at the 2%. it's an uncertain on which way they are going to go, you know, if you start to see the equities back off, october, -- of course yields gain in value and there could be panic in the market with people searching for the volatility index or a play like gold or silver. gold is hovering at 1600. there's questions about whether or not it gets a bounce back up or not. liz: weird that platinum and palladium move higher by more than a full percentage point and yet gold and silver moving down? >> it's a story out of south africa right now. there's supply and demand restatements from out of there. over the weekend, there's talk about gunfire, and thank god it
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was rubber bulleted used. about nine different mining workers there. there were injuries, and as a result of that, there's also that threat for labor disputes. prices should continue to rise on that disruption. >> let's watch that. again, as pointed out, rightly so, elliot, and we've seen that in the markets that sometimes one headline gyrates a market, and it's not a trade to jump into at that moment. >> as i always said, liz, crude oil is the king of the news drip markets; right? liz: right. >> today, crude is higher, but there are unledded gasoline and the heating oil contracts lower, meaning the brink contract higher, and what we saw today was, the wti spread coming in a little bit, but not much of anything today. crude's higher, products lower. liz: everybody's freaking out about higher gasoline prices nationwide, and in certain realms, rightly so, but when
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it's coming down where you are, does that take, what, 24 hours before the guys at the pump start to bring their prices down? >> those guys at the pump, they raise them faster than they lower them. liz: they do. >> i'll tell you that much. that's something screwy with crude and unledded gasoline and everything. my personal thought is that it should be a loot less expensive. the way crack spread is something we trade here where you buy crude oil and crack it in heating gasoline, and those crack spreads are trading high prices. the guys who turn the oil into gas are making a fortune, you know, that's really what's going on around here. liz: ben willis, is there a move on the floor? >> energy's been one of the favorites for a long time, there's areas we want to put energies into, putting options into, and the energy sector has been one of the top performing groups, and because, quite frankly, the refiners, stocks
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like valero, and the marathon oil there, so they put on a great show, and i think if you believe the world economy's improving, that's another area to continue to improve from the equity's side as well. liz: do you believe that, ben? do you believe the economy's improving? >> i do. liz: slightly; right? i don't know why -- i'm not putting on a cheer leading skirt -- >> please, please do. >> it's improving if you're a refiner, right about that. liz: leave it to elliot to get off the cheer leading skirt -- >> killing it, killing it. liz: exactly. ignore this world economy, great conversation, thank you so much. our one and only floor, under the weather, hmos like humana and united health with a great deal of exposure to medicare rates. here's why. rates could go down next year
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based on what's being said by the center for medicare and medicaid services. peter barnes followed the story from washington. isn't that what people want? rates to go down? >> well, not if you're investing in health insurance stocks; right, liz? health insurance companies, and the industry plans to fight back on some proposedded cuts that would hit something called medicare advantage, the popular hmo version of method care, friday, the centers for medicare and medicaid services proposed a cut for 5% or more for insurance companies that offer medicare advantage, about a quarter of all seniors in medicare, about 15 million enrolledded in medicare advantage instead of regular medicare. now, for some seniors, medicare advantage can be a better deal with added benefits like vision care and dental, but patients have to stay in the network, of course, which helps insurance companies manage their costs. now, the private insurers are reimbursed by the government. the feds can lower reimburrments
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now, but the industry says this is too much. >> simple fact is washington can't cut and tax the medicare advantage program this much and not expect seniors to be harmed. >> now, there's a 45-day comment period before the government decides to finalize this proposed cut or to soften it, which is, of course, what the industry will lobby the agency as well as the white house and congress to do. liz? liz: these guys are incredible. the stocks hit 52-week high over the past two years now, and on top of it, i don't think anyone's bleeding for the insurance industry because they raise rates for the past 30 years, way before obamacare. i wonder if it's time for them to pay the piper at some point and endure what the reality is and bring costs down, peter. >> well, they acknowledged that they're not as popular as used
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car salesmen. liz: ha-ha, okay, at least they are not in denial. thank you very much, peter bans. >> okay, liz. liz: closing bell ringing in 52 minutes, and nasdaq has a new option to the options business. investors can buy and sell options on u.s. treasuries. if you think rates skyrocket or fall, use a derivative, but can using a derivative to hedge interest rate risk or take a directional bet on where rates are headed make you money? coming up, nasdaq's executive vice president on a fox business exclusive telling us how these brand new options hitting the tapes today work. it's coming up next just part of the countdown college theory. ♪
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♪ liz: the power mover of the hour is ticker symbol nvgn, one that's skyrocketing, and it's up 208%, shares. pharmaceutical research company jumping on positive news, and studies show that cs6 compound
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quickly killed ovarian cancer stem cells at low concentrations and destroyed regular cancer cells. the stem cells are almost totally resistant to radio therapy in the first place in standard anticancer treatment. this is human. let me show you the one-year chart because it's bizarre. red -- ready? okay. this bounced aren't, but, today, novogen jumping now 211%, and here's, just want to see that move, it's a really good one at the moment. that's nice. okay. that's novogen. the dow 30, there's just a few red names here, united health group as we talked about, but alcoa at the bottom of the barrel, shares of two retailers seeing green because of positive earnings news from express. let's get to lauren at the new york stock exchange. >> liz, yes, cvs care mark and rite aid up today, cvs, annual
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high of 3%, up 6% from right aid, and, yeah, the pharmacy benefits manager expressed scripts out with earnings last night, a positive outlook for 2013, and, well, these two retail drugs, stocks are beneficiaries of that outlook from express scripts, back to you. liz: okay. thank you very much. derivatives, risky; right? treasuries, safe; right? is there a way to meld the two to help you make money? treasuries have been in a bull market for the better part of 20 years, but yields lately, plummeted near record lows and cut staying there. last week, goldman sachs president and chief operating officer told me the potential, though, for rates to reverse themselves jump higher could cause havoc. here's what he said. >> if people need liquidity prior to the end of the bond maturity, they may be surprisedded to find out they don't get a hundred percent of the principle back, and i'm very concerned about that. liz: a new trade in town if you're concerned about it too
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and you want to bet on that very move, today, the nasdaq launches options trading on safe haven u.s. treasuries, individual ones, giving you a now way to play interest rates. joining me is the nasdaq trading services executive vice president. this is a way to wager on the moves of the ten year and the 30-year; correct? >> yeah, it's not just to wager, but it's a hedging instrument to protect exposure. if you own the ten year or 30-year or want to own it or actually want to generate more income, this is a classic options tool to help you manage your risk, expose yourself to more risk, protect yourself as rates start to move around. liz: in the past, you were able to do an option on, say, the tvt or the tlt, which are etfs allowing you to do this on treasuries, but this is different. tell us exactly how. >> well, this is different in two ways. the tlt and etfs are respondent's exhibits with a
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basket of trash reimburrments securities. these are specific options on the current on the run bonds issues by every hour to fund themselves. they are specific. they are the bonds that are actually issued by the federal government this quarter, one of the most liquid bofnedz out there for traders to trade. liz: in essence, you can buy $10,000 contracts tied to ten individual bonds with a face value of $1,000 per bond? >> correct. >> give people a hypothetical. rates move from .202%, where they are today, to 2.89. >> as rates go up, you can buy a put, protect yourself from the lower -- the bond values going down, or if you think rates are going to stay the same or go up or down and your bond values go up, buy call options on that, use a whole varieties of option straddle or spread strategies to protect yourself and generate
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more income selling a bond and call option on top of it. liz: u.s. treasuries, the ones you buy are the most liquid. they are, in essence, issued every quarter, and, again, individual because these have become extraordinary popular bonds, the ten year and 30. >> on the run bonds, what federal government uses to fund every quarter, are, by far, the most liquid security tradings there, and there is not currently a transparent two-sided visible centrally cleared product out there to hedge exposure to the product. these are the first products. liz: define "on the run." >> means those funds everyone is concentrating. on the run means every quarter when the federal government issues new tens, 30s, ect., those become the on the run bonds. liz: okay. the risks. we always want to let investor viewers know about the risk. say the fed decides qerks, 4, 5, you name it. what's the risk if you have -- if you believed that rates jumped higher, and if you
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believed rates are higher, just like any other option trade. you have exposure and risks like every other option trade out there, so these are for sophisticated investors who understand the risks they are trading, but, generally, you know, what we say is you can use them to hedge yourself against those risks. sudden shocks in interest rates, and an earlier commentator this afternoon talked about volatility coming back in the interest rate market. this protects and manages that volatility by owning our using these products to hedge your exposures. liz: right now, it's a test one with the ten and 0. will you expand to the entire yield purse? >> the goal here is to extend across the entire yield curve and add other products on to it if these are successful. liz: this will be successful for the nasdaq i imagine, nine months in the making, and timing looks good. >> a little lucky, happy about that. liz: rates are going to jump because the economy's getting
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better. >> right. liz: thank you. >> thank you, liz. liz: the nasdaq executive vice president of trading services. does it have a name? >> just options on u.s. treasuries. liz: could have had a fancy name. >> yeah, i know. liz: thank you very much. >> thank you. liz: 40 minutes until the closing bell rings, a tale of two stories, apple heads south and google breaks out to new highs, and there may be a catalyst to take the search giant higher. you want to bet on this? explaning what it is, show you our vision of it, details when "countdown" returns. ♪
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that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! liz: google for the fox business market check, shares hitting a brand new record high.
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passing the $800 a share mark. the question is where will it close in 36 minutes? that's why you have to stay with us. we're watching this. the "wall street journal" reports that the company is looking to create retail stores. we all know how edgy google head quarters, and there's free food, everything. will that fresh style at the headquarters be reflected in the new stores in microsoft tried this starting in the fall installing 32 popup stores across the country ahead of the surface launch. that's what those looked like. the popup store point was the focal point for the surface launch in october back on october 26th. they were wearing, as we see, blue shirts. apple retail stores remain one of thee best looking of its kind. the chinese even put up fake apple stores. will google follow suit with the clean look and kind of hang out factor? will they go with something different? our geniuses in the graphics department here at fox business
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came up with this. google's first retail store might look like this. stark contrast to apple; right? google's colors on the floors and walls. google expected to sell smart phones. put it up. you see on the walls, our graphics department put up the tablets and google tv software so we don't know, but we are anticipating that that is what it will look like, but, more importantly, what's the stock going to look like after the close. we'll show you the minute it happens. see the big posters and hang out. the floor, they are going to look at that and say it looks like a laundry room floor. i doubt they improve that. i don't know, i don't think so. let's get to dodd-frank. financial reform, the act pass the and signed into law by president obama in 2010, and it still has not been totally implemented. 2010 until today. what is the hold up? charlie has the latest. could it be the 1450 questions and sub questions that the law
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has? >> well, yeah. you know, and many of those questions, i wouldn't say all, but many of them, are involved one edict in particular in dodd-frank named after the former fed chairman, former senior adviser to president obama and economic matters had a plan to essentially take risk out of banks. make sure they don't roll the dice in the securities markets. they don't trade, do what's known as pro-- proprietary trading. it's not that simple. to date, regulators, and this is the various regulator involved in it. the cftc, the fcc, the fed, bank regulators, they still can't figure out exactly what is a proprior tear trade. here's the hold up. what's the difference between market making and proprietary trading. when i market make on a bank, i have a lot of clients out there. suppose the clients, i know they want yen. i hold them on the books. those -- that yen goes up in
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value at some point. is that a proprietary trade? liz: because you get realistic returns? >> i'm holding it. i'm doing it for a customer so it's not necessarily a proprietary trade, but market marketing, and you can lose money making money. during the financial crisis, why the firms went up, it was not proprietary trading when they traded, but it was because they were basically working for their customers, they were holding bonds in inventory that they thought the customers would buy, mortgage bonds, and when the housing market crashinged, guess what, the bonds were worthless, and many of the firms were insol vent, and that's what this doesn't address, and i'll tell you, for market making, it's like, that's part of being a bank. you might as well not be in a bank although there's risks involved, you might as well not be a bank if you can't market make for a client. liz: jpmorgan, wells fargo,
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goldman sachs came in with earnings for the fourth quarter. they managed just fine, and they are backing away from a lot of the proprietary trading. >> there's a difference between proprietary trading and market making. liz: holding on to that part of it, but that's the new question. >> that's what we're talking about. jpmorgan was never big in the risk taking, goldman sachs was huge, and here's what they are worried about in the regulators defense. goldman sachs masks because they are smart enough, proprietary trades. yes, the clients want this, but, you know, we can take, you know, positions here and there, hedge off positions, and the guys are smart. goldman sachs, it's run by lloyd and gary, they ran the place like a hedge fund in the, you know, since they got in there. fund since they got in there. they have been senior executives at the top. running the company.
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if you notice, goldman's profits went through the roof at that time, almost imploded during the financial crisis. they would say no, not for the bailout of aig. goldman sachs the underwater because goldman sachs held bonds on the balance sheet that were backed up by aig credit default swap. there we have it, an interesting debate. you kind of and the banks if you and the marketing. they need that for their clients. this goes back to maybe these guys should just be smaller. when you are small comic and take risks. you don't love the entire financial system. some of this is clearly, logic dictates each be making market. whatever. liz: this is good.
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charlie: you like it? you don't like the tide? tie? liz: it is not that i don't, this just works. hide the gold chains that little lower. charlie: people with gold chains get the job done. liz: thank you. the closing bell ringing in 29 minutes. as big pharma faces a patent cliff every day of their lives, many big name brand drugs go off patent this year, how much of the drug maker have to gain, and should you be investing in this cliff? coming up after the break, newly formed and branded company. a fox business exclusive. great, everybody made it.
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we all work remotely so this is a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're often all on the move, ashley suggested we use fedex office to ld packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill about h tendency to use all caps in emails. [ shouting ] oh i'm sorry guys. ah sometimes the caps lock gets stuck on my keyboard. hey do you wanna get a drink later? [ male announcer ] hold packages at any fedex office location. today is gonna be an gimportant day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities.
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siemens. answers.
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>> i am sandra smith with your fox business earnings preview. shares of herbalife moving higher ahead of the earnings report on the company after the bell. it has been a wild ride for the company as they continue their very public feud on the short versus the long side of this stock. alice is leading earnings of $0.39 per share on revenue of $14.12 billion. investors should be watching overall sales figures in the most recent quarter herbalife sales grew worldwide. very specifically keep an eye on china, this area provided the fastest growth of 41%, but accounted for the smallest slice of the pie. watch out for accounts receivable and inventory numbers while sales did grow, unwelcome
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sign each up 27% last quarter. coverage in all the big reports out after the market closes, marriott, dell and herbalife all reported, don't miss that "after the bell" in less than 30 minutes. now we continue with our "countdown to the closing bell." liz: investors are taking chips off the table when it comes to casino stocks today. let's go back to lauren at the new york stock exchange to talk about that. lauren: let's talk gambling, let's talk casinos. the chinese new year in february this year, and we saw reports of hotel bookings being up, people going, but in the end it didn't turn out as robust as expected. we had several gambling and casino stocks, all down pretty substantially today. it is looking like a mutated
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february. back to you. liz: it was the year of the snake, who wants that? give me the year of the cat. thank you very much. as many big pharmaceutical companies are battling the so-called patent cliff, one drugmaker is cruising through with his earnings to show for it. take a look at actavis, the newly merged company, actavis beat expectations on both the top and bottom line. up about 200% since 2008. paul bisaro is actavis ceo and president joining us on an exclusive fox business. we should explain to people you really cover both ends of the spectrum. generic and specialty drugs. >> we were up on the generic side, we were also up on the brand side with revenues being up as well, and we look for this balance business model going forward.
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opportunities for us going global, we're now in 62 markets around the world, great opportunities in those markets. liz: what is your best selling generic drug? >> probably concerta. it is a drug for add. we had a lipitor drug, it has fallen off. last year it was a big drug. liz: do you have any blockbuster drugs? a billion dollars or more in sales. >> we hope to get there, but not yet. liz: you can believe and not because you guys are again looking at both sides of this, but the bio similar part of it, those are drugs that actually are derived from living organisms, correct?
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>> they are large molecules. these patientexpectations are al be biological products. you can just see the numbers, the numbers from amgen. everything from rheumatology two oncology, antibodies, all of these are targeted at drugs and do a fantastic job. but we're working on is the next wave of bio similar. similar to those that will be sold at a lower cost, highly effective, sold at lowe a lowert reduce health care costs. not just in the u.s., but around the world. liz: health care cost our topic today. a lot of the hmos are dropping because medicare rates could go down and they're very concerned trying to protect like somebody stepped on their air hose. how would that affect you? >> it probably would not affect us all that much.
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medicare and medicaid are the big sectors, but that shouldn't affect us too much. we will be benefited by the universal health programs as more prescriptions are filled in the u.s. again, i think the bigger driver for us as a company is a global need to drive down health care costs. generic medicine to do that, and all the markets strapped around the world. liz: you must spend a lot of time in the courtroom, the collective actavis. thank goodness you were a lawyer back in the day, because there are constant lawsuits from people who want to protect the patent they have any file appeals and go back and forth, how much of your intellectual bandwidth is spent on this? >> we have a lot of lawyers on staff. a small law firm, i think. but we spent a lot of time looking at patents looking at those that we think our challenge a bull.
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we can get 180 days of exclusivity. there is an upside for us as well. liz: we just put our portion of it up there. >> the patent cliff is hitting the u.s., europe. so those are opportunities for us, as we can bring generic medicines to the market when the patent expires or we can bring them earlier. so it is really just an upside for us. liz: last year you were jumping about 20% year over year, how did you do that at a time where that area is very weak, do you expect that nice jump this year? or will a it moderate or be better? >> someecountries are up, some countries are down, but we spent a lot of time and money on
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organic growth. really what it was about for us is launching new products and tt will be true for next year, this year and 2014. liz: your best hope drug at this point that you are excited about. >> the big drug for us we're launching later this summer is a patch for pain. look for that in september. liz: the stock is up 45% year-over-year. paul, good to see you. ceo and president in a fox business exclusive. the yen continues to fall to new lows while japanese stocks, have you seen the nikkei? have investors, you perhaps already missed the rally? we bring in both sides, it is a street fight on the streets of japanese investments.
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don't miss it, it is coming up. it is next.
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liz: investors are keeping a very close eye on japan. no wonder. look at the nikkei to 25. shooting up to new highs, also down today. conversely the yen has dropped about 13% against the dollar in the past three months. it rebounded slightly after japan's finance minister denied they were considering purchasing foreign bonds. the fact is that trend is in place right now, but are these
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signals continue buying japan or perhaps get in if you haven't or stay far away. a street fight battling it out we have luciano siracusano, and weighing in at our bear, cullen roche. a japan hedged equity fund that has obviously done well. one year up 19%. you are on the bullish side, why? >> it is one of the fewer the fe equity market is negatively correlated to the currency market so the japanese yen weakens, it is not unusual to see it really because you have a large exporters to benefit from that in japan. the basic dynamic is people in control that government wants to see the currency weekend and they will continue to put pressure on the banks of japan to get those results so unless you want to fight the fed in
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japan, you probably want to hedge out the currency impact of the japanese equities exposure. liz: it sounds very rational, but you are not buying into this. why are you bearish on japan? >> i worry about these forms of monetary policy because in essence it is putting the cart before the horse. the bank of japan really trying to do is bid up stock prices without actually impacting the underlining fundamentals of the stuff that makes up in essence the corporations that make up the indices so i get concerned i see these trade policies enacted that target the nominal wealth, stock prices that doesn't necessarily have an impact on the underlining corporations. liz: lets me play devil's advocate, are you fighting the so-called japanese fed, the yen will continue to go lower, doesn't that automatically mean a direct correlation to hire stocks?
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>> yes, you have this situation in japan with inverse correlation between the stock market, but ultimately we're all trying to devalue. these sorts of policies can work in the currency market in the short term but ultimately you have the fed, the ecb, all the major central banks of the world trying to drive current account so the yen can go low in the short term, but ultimately you are fighting against and unmovable object. they cannot drive down their currencies at the same time. liz: i am with him on one point, that is you just don't know what is eventually going to happen, the yen could just collapse at some point and what does that really mean to equities there? >> anything could happen. all i know is that the fed has been doing this in the u.s. as march of 2009 you've already 20y seen 100% movement in u.s.
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stocks. i'm not arguing whether or not this is a good thing or bad thing, as long as central banks are out there doing it we have to be mindful of what is the impact on equity markets. when this kind of thing happens in japan, japanese stocks react in a very unique way. liz: which they have. we just saw the nikkei 225. is the money already made? >> the nikkei peaked, so you loolook at25% rally over the law months have been mindful this is an equity market down 75% from its highs. if you are underweight japan, that was a good strategy but now the japanese equity market is beating the s&p 500 and there are some risks to be under. liz: you say you will not invest in japan. if not there, what is a better buy? >> i think japan is a bad house
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in a good neighborhood, really. if you're going to invest and allocate money toward asia, there are better options. the big thing trouble in japan in the long-term is the demographic problem. they make japan's future really difficult. if you are going to move money toward the asian economy, there is much better short. india is an economy with much better long-term trends in place. it makes for a better house in a good neighborhood essentially is what it comes down to. liz: do you have a get out while the getting is good point? is there any point you look at where this could reverse? >> to get the point the bank of japan wants to have its own policy and the prime minister and doesn't take its cue from the prime minister, that is where you get a reset in this
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market, but until that happens, you should make a distinction between what is happening in the japanese economy and what is happening in the japanese equity market. you don't have to be bullish on japanese economy to be bullish on the near-term japanese. liz: that is exactly what is happening in the u.s., isn't it? we have a very tentative economy, but the equity market has been in the tank in the past year. these are global exporters like the sony's of the world, but there is an informal boycott in china of japanese equities. they're having this dispute over an island somewhere. does that concern you there goes that market? >> they have had a recession in japan, three quarters in a row the economy has contracted for the equity markets still up 25% the last three months. so if you get any kind of reconciliation or stabilization on that point, that can
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potentially be a negative that gets removed from the equation going forward. liz: we will have you guys back, thank you so much for joining us. cullen roche and luciano siracusano. we love that. the closing door ringing in about five minutes. google is on fire with five minutes to go before the closing bell rings, edge that search giant is above $800 per share for the first time ever. will it stay there as we approach the close? details and the stock as it comes. look, if you have copd l,
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